How does a Critical Illness Rider attached with a Life Insurance Policy work?

How does a Critical Illness Rider attached with a Life Insurance Policy work?

Vikas Kumar Singh, Noida

The ‘Critical Illness Rider’ attached with a life insurance policy provides coverage in the event of detection of a critical illness to the insured. The entire sum insured under the rider is paid to the policyholder on the diagnosis of a critical illness. The illnesses covered and the premiums vary across insurers. However, before signing up the policy, it is advisable to check the list of illnesses covered and the ones that are not covered. Some insurers exclude critical illnesses that may have been caused by the existence of pre-existing ailments. Also, the point worth noting is that few insurers terminate the base policy once a claim is made on the rider. Typically, the rider gets terminated if the critical illness is diagnosed to be terminal in nature.